Medium-Sized Business Sector "Deep Disappointment and Regret Over the Failure of Minimum Wage Industry Classification"

[Image source=Yonhap News]

[Asia Economy Reporter Choi Dong-hyun] The small and medium-sized enterprises (SME) sector has expressed deep disappointment and regret over the decision not to implement differentiated application of the minimum wage by business type.

The Korea Federation of SMEs issued a statement on the 17th, saying, "Our minimum wage has been raised too steeply without considering the market's capacity to absorb it," adding, "Micro and small enterprises have already reached their payment limits due to the prolonged COVID-19 pandemic followed by a sharp rise in raw material prices."

The Federation continued, "Despite the SME sector's strong demand for differentiated application for industries that have reached their limits, the Minimum Wage Commission once again upheld a single minimum wage system, ignoring the desperate reality and wishes of micro and small enterprises, which is an irresponsible decision," emphasizing, "The SME sector urges the government and the Minimum Wage Commission to prepare more realistic and effective measures, including expanding relevant data, so that the legally stipulated differentiated application by business type can be implemented in the future."

Furthermore, the Federation stated, "Since the differentiated application by business type was rejected, we clearly state our position that next year's minimum wage level must be determined based on industries with a high rate of wage non-compliance due to their inability to afford the current minimum wage level."

Meanwhile, the Minimum Wage Commission, the deliberation and resolution body for the minimum wage, held its 4th plenary meeting at the Government Sejong Complex the day before and put the issue of 'differentiated application by industry' to a vote. The result was 11 in favor and 16 against, leading to its rejection.

This content was produced with the assistance of AI translation services.